Forced to Resign? Constructive Dismissal in New Zealand | McKenzie Law

Not every resignation is a genuine choice. If your employer made your working life so difficult that you felt you had no real option but to quit, that may be a constructive dismissal, and in the eyes of the law, it’s treated the same as being fired. You can raise a personal grievance for it, but the usual 90-day deadline still applies from the day you resigned.

What is constructive dismissal?

It’s when you resign, but the resignation was effectively forced by your employer’s conduct. The law looks at whether a reasonable person in your position would have felt they had no choice but to leave. Common scenarios include:

A breach of duty so serious you couldn’t reasonably be expected to stay
A deliberate campaign to make you resign (freezing you out, unreasonable demands)
An ultimatum: “resign or be dismissed”
Unaddressed bullying, harassment, or a serious health and safety risk

Proving it isn't easy

The burden is on you to show the resignation was caused by your employer’s actions, not just general unhappiness or a better offer elsewhere. That’s why documentation matters enormously: emails, meeting notes, and a clear record of the issues you raised and how your employer responded (or didn’t).

What to do before you quit

Don’t resign in the heat of the moment. Once you’ve resigned, it’s very hard to walk back.
Raise the issue formally, in writing. Give your employer a genuine chance to fix it.
Keep records. Save every relevant message and note every incident with dates.
Get advice first. A quick conversation with an employment lawyer before you resign can make or break a future claim.

The takeaway. If you’re being pushed toward the door, resigning may feel like the only escape, but it can quietly weaken your legal position. Get advice before you hand in your notice, not after.

FAQs

My employer said the decision was already made when they “consulted” me — is that legal?

No. Consultation must take place before the decision is finalised, with a genuinely open mind. An employer who has already decided the outcome before consulting has not met the legal standard. This is one of the most common procedural failures in NZ redundancy processes — and one of the strongest bases for a personal grievance.

My role was made redundant, but someone else is now doing very similar work — what does that mean?

It is a strong indicator of a sham redundancy. If the substance of your role has effectively been redistributed or a near-identical position has been created or filled shortly after your disestablishment, the redundancy may not have been genuine. Seek legal advice and document everything you know about what happened to your duties.

Am I entitled to a redundancy payout?

Only if your employment agreement provides for one, or you successfully negotiate one. There is no statutory minimum in New Zealand. However, if the redundancy process was flawed, you may be entitled to remedies through a personal grievance — including compensation for hurt and humiliation and lost remuneration — which can exceed any contractual payout.

My employer gave me 48 hours to respond to the restructuring proposal — is that enough time?

It depends on the complexity of the proposal, but 48 hours is generally very short for a significant restructure affecting your employment. Best practice under NZ law is to provide adequate time to seek independent advice, prepare a response, and genuinely engage. A tight deadline that prevents meaningful consultation is a procedural flaw that can undermine the entire process.

Can I challenge a redundancy if I’ve already signed my exit documents?

If the documents were signed and countersigned by an MBIE mediator, the settlement is likely full and final. However, if you signed an agreement directly with your employer without MBIE involvement, the position may be more complex. Either way, seek legal advice immediately — the window to act may still be open depending on the circumstances.

Talk to McKenzie Law before your next move

At McKenzie Law, we represent employees only — and we have seen every variation of a rushed, predetermined, or retaliatory redundancy there is. If you have received a redundancy proposal, if your consultation felt like a formality, or if you believe your role was not genuinely surplus — we want to hear from you.

McKenzie Law is an Auckland-based employment law firm representing employees across New Zealand — including Auckland, Wellington, Christchurch, Hamilton, Tauranga, and all regions. All content is general in nature and does not constitute legal advice. For advice specific to your situation, contact us directly.